Target Marketing Plan

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Transcript of Target Marketing Plan

Expect More. Pay Less. Community Giving Diversity at Target Protecting the Environment SWOT Strengths Second largest retailer in the US Store Style Large number of retail networks around 1755 stores. Effective Targeting Strategy Wide Product Portfolio Unique shopping experience Cheap Chic Approach Socially Responsible The top seller of Gift Cards in US Weaknesses Target products are more expensive as compared to competitors. Limited international exposure Consistently shadowed by Wal-Mart Damaged reputation from past lawsuits High employee turnover Target Corporation was fined $120,000 by the United States Environmental Protection Agency for selling outlawed aerosol confetti string. Opportunities Room for price reduction Simple Implementation New Brand Image Economic Trend Threats Fierce competition from Wal-mart and Costco The price increase of food leads to price sensitive consumers second largest discount retailer in the United Statesfounded in Minneapolis, Minnesota in 1902 In early January Target announced its expansion into Canada. Target will operate 100 to 150 stores in Canada by 2013, through its purchase of leaseholds from the Canadian chain Zellers of the Hudson’s Bay Company Stores are not location specific Political Factors Economical Factors PEST Analysis Social Factors Technological Factors Government policyGovernment trading agreementsGovernment stabilityTrademark regulations GDP growthIncreasing labor costsinterest rateIncrease in Canadian Dollar Bilingual countryIncrease in populationConsumer buying patternsaging population New technological advances forcing to buy new equipment every 2-3 yearsR&D costsoutsourcing opportunities Target market Demographics Canadian Market Competition Walmart , Costco, Winners, Superstore, Ikea, Shoppers Drug Mart Cheap Chic approach the youngest among major retailers - 42- 46 years old

The median household income is $55,000.

43% percent of Target shoppers are educated professionals

Majority of Target guests are female

Most have children at home

Target guests are smart about their purchases, savvy to trends and conscientious about their communities. Typical customer hopes to attract more hip, urban, and wealthy group of customers Population income Population projections of visible minority groups Population by sex and age Popular brands in Canada SmartiesCanadian maple syrupCanada Dry Ginger AleArmstrong cheeseMaple leaf meatsDanoneCloverleafCadburyMott’s Clamato Implement Identical Strategy Implement a Brand New Strategy Implement an Adjusted Strategy costs optimizedUtilizes strong brand imageCanada Spific productskeep the same supply chain systemrestaurants could be specific to Canadian tastesemphasis on being environmentally friendly Pros Cons Pros Cons Pros Unique demographicsCulture differencessome brands would not be recognized in Canada cost effectiveStrong Brand recognition by CanadiansSupply chain managementIdentical store layouts cost ineffectivetime consuming research (similar demographics to the US )low brand recognitionhigh risk of brand regection will satisfy the needs of all minority groupsmore recognition in the Canadian market Bus 343 - Marketing Strategy for Target Corporation Chanisa CalvinSarahKatrina Lack of inventory Identical STP, different branding Identical STP, identical branding different STP, identical branding Strengths Costco Wholesale offers its customers lowest prices on a wide range of national and international branded products and goods Costco Wholesale also operates several consumer and business services, ranging from financial planning to health insurance. Loyal customer baseEmployee retentionStrong managementOne of the best private label programsVery generous return policy Strengths Stores are generally large, which makes diversification into non-food items relatively straightforward. One of North America's leading retail operators, with financial capacity to expand aggressively. loyal customers